Ramsay MacDonald

Ramsay MacDonald (12 October 1866-9 November 1937) was Prime Minister of the United Kingdom from 22 January to 4 November 1924, interrupting Stanley Baldwin's two terms, and from 5 June 1929 to 7 June 1935, again interrupting Baldwin's two terms. He was the first UK Labor Party PM.

Biography
James McDonald Ramsay was born in Lossiemouth, Scotland on 12 October 1866, the illegitimate son of a farmer and a housemaid. He became a teacher in 1881 and became involved in socialist societies in Bristol and London, moving to London in 1886. Taking on the new name "Ramsay MacDonald", he was one of the co-founders of the UK Labor Party alongside Keir Hardie and Arthur Henderson. MacDonald became known for his speeches, pamphlets, and books, and he was elected Prime Minister in the parliamentary election of December 1923, in which the UK Conservative Party lost its majority. MacDonald became the Labor Party's first Prime Minister, and he allied with the UK Labor Party in the House of Commons. During his premiership, MacDonald extended full diplomatic recognition to the Soviet Union, and he later signed a trade treaty with the USSR. The Liberals opposed MacDonald after rumors spread of a loan to Russia, and he was forced to resign, despite holding no communist sympathies. In 1929, he returned to power when the Labor Party once more held the largest number of seats in the House of Commons. His policies were similar to that of his conservative predecessor, Stanley Baldwin, but he reestablished diplomatic relations with the USSR. In 1931, the onset of the Great Depression led to some advisers urging drastic reductions in government spending, especially a cut in unemployment benefits. MacDonald briefly resigned in August 1931 before quickly returning to power as head of a "national government", which was backed by the Conservatives, some Liberals, and a few Laborites. His government increased taxes to replace lost revenue, and he cut government spending to avoid a budget deficit; interest rates were lowered, and the gold standard was abandoned. Britain's free trade economic policy was brought to an end in February 1932 when protective tariffs were implemented, but unemployment dropped from 3,000,000 in 1932 to 2,000,000 at the end of 1934 and to 1,600,000 at the end of 1936. MacDonald resigned in 1935, and Baldwin returned to power once more.